Author of “The Price of Tomorrow,” Jeff Booth, has cautioned against debt deflation, terming it a “great depression on steroids” if the Federal Reserve continues to raise rates. He believes the Fed will eventually be compelled to reverse its course.
Jeff Booth Warns of Dire Consequences of Further Fed Rate Increases
Jeff Booth, author of “Tomorrow’s Price,” addressed a number of questions in a recent Ask-Me-Anything session on Stacker News. When asked if he believes the Fed’s recent rate hikes will lead to deflation, Booth replied:
If they continue raising, it will eventually lead to a credit deflation or credit annihilation, akin to the Great Depression with steroids. Eventually, the Fed will have to turn around.
“It’s important to remember the lag effect…18 months from when the actions are put in place,” Booth added. He called attention to the fact that “there is no inflation, no transitory inflation, high inflation,” and warned:
The tightening of belts started in September and the Fed only reduced its balance sheet by 2.7% last year, with the associated damage…if they keep going, it’s going to be ugly.
Booth’s book, “Tomorrow’s Price: Why Deflation is the Key to an Abundant Future,” was published in 2020. In the book, he grapples with how to incorporate technology-driven deflation into a system where inflation has been the norm. Booth believes that “we can avoid an impending economic crisis if we can learn to accept what abundance brings, which could even be a world without jobs.”
Booth has been a long-time proponent of Bitcoin. Last May, he commented: “Bitcoin will grant individual rights and freedoms to the billions of people on our planet who should have had them in the first place.” On Friday, he tweeted:
We live in a world of abundance, but we’re held back by a financial system based on scarcity. A lot of people still don’t realize this because they are stuck in a system that demands scarcity. But Bitcoin is the key to unlocking abundance.
Do you agree with Jeff Booth about rising Federal Reserve rates? Let us know your thoughts in the comments section.
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